Equilibrium
Define equilibrium.
When supply and demand meet and are equal.
What is a trade-off?
Trade-offs are the allternative that is available when making a decison.
Define Scarcity.
A shortage in supply.
Define Supply
The amount of product a company has.
Define demand.
The willingness and ability of a consumer to buy certain products.
Define disequillibrium.
When the demand, and supply do not meet and are not equal.
What is opportunity cost?
What someone loses when choosing one thing over another.
Define economics.
The branch of knowledge regarding production, consumption, and transfer of wealth.
Define profit.
How much money is made from selling a product.
What is inelasticity of demand?
When the buyer's demand does not change even when the price changes.
Interactions between buyers a sellers will...
Always push the market back towards disequilibrium.
How are trade-offs and opportunity costs related.
A trade-off is the choice that you have to make between two options, and the opportunity cost os what you loose based off of that decision.
Define Entrepreneurship.
The process of starting and launching a business.
Define elastic supply.
When supply increases or decreases as the price fluctuates.
Define elastic demand.
When the amount of demand for a good changes as price changes.
How do changes in supply affect demand?
Changes in supply will either increase or decrease demand for an item.
What are you weighing when making a decision?
Cost and benefit.
List the factors of production.
Land, Labor, Capital, and Entrepreneurship.
What is a change in supply?
When the entire supply fluctuates either to the right or left.
When is a demand curve accurate?
As long as there are no changes other than price that could affect the consumers decesion.
Why are prices so important?
Price is a language both producers and consumers can use to determine value.
What is one common trade-off people face in their every day lives?
Income vs. Leisure.
How much money one makes compared to spending money on things that arent a 'necesity'.
What does every choice come with?
Consequence!
What is the law of supply.
How the price of goods and services affect supply.
What are four non-price factors that affect demand?
Consumer preferences
Consumer income
Demographic changes
Brand image